Handout 3

Question 1

defined as “the state of a country or region in terms of the prodution and consumption of goods and services and the supply of money

Answer 1

Economy

Question 2

This effect is caused by tourist expenditures in commodities such as accommmdation, transportation, food, and attractions. These spending activities are beneficial to industries that are directly involved with the said commodities.

Answer 2

Direct effects

Question 3

This comes in the form of tourism investments, government spending for tourism development, and purchase made from suppliers for commodities used for tourism. The example for suppliers are farms for food and delicacy products, industrial and utility companies for electricity and water, and training centers for human resources needs.

Answer 3

Indirect effect

Question 4

This refers to the long term and large scale effects of tourism such as skill enhancements for better chances of landing a job, availability of better social services, and infrastructure development.

Answer 4

Dynamic effect

Question 5

It refers to the broader contribution of tourism through the expenditure of people who are directly and indirectly employed by the tourism industry such as food, beverage, clothing , and recreation.

Answer 5

Induced effect

Question 6

Tourism has a wide job market ranging from entry-level positions (e.g. hotel front desk staff, room attendants, servers, concierge, and airline ground staff) to more advanced positions .

Answer 6

Job Creation

Question 7

Tourism creates opportunities for small-scale businesses, of which is beneficial to the economy. Their involvement in tourism rangees from selling handicrafts and souvenir items to other forms of tourism, such as agritourism where a farm offers farm-related education and experience.

Answer 7

Livelihood

Question 8

This pertains to the economic impact of tourism in which the places of origin and transit routes going to the destination also take its share of tourism-generated income. Examples of this is foods and beverage products purchased in stopover routes , toiletries brought from convinient stores along expressways, and fuel at gasoline stations

Answer 8

Share of Tourism Income

Question 9

The government earns from tourism by imposing various fees in processing tourism-related documents such as passport fees, visa fees, and fees for using tourism infrastructues such a parking and airport fees. They also gain income from imposing taxes on tourism businesses.

Answer 9

Taxes and fees

Question 10

this negative impact is mostly accustomed to supplies sourced outside a tourist destination. This happens when specific items needed for tourism operation are not available within the area. Some examples may include raw food items needed for international cuisines served at restaurants and imported cloth and linen for hotel beds

Answer 10

Leakage

Question 11

Some argue that tourism employees are subject to low job security. This problem is mostly associated with the practice of outsourcing and contractualization in which an employee works with a tourism-related establishment on a limited time basis or depending on the season.

Answer 11

Seasonality of Jobs

Question 12

As a tourism presents investments opportunities, local communities tend to rely on the industry as the main source of their income and economic improvement. This makes them vulnerable to the natural and man-made events that can disrupt operations and its value-chain

Answer 12

Overdependence

Question 13

Tourism development, when prioritized by the government, can take a huge part of the national budget. In this case, other projects that may have been more beneficial to the citizens, such as social services, education, assistance to the poor, and health services, will suffer a huge budget cut.

Answer 13

Opportunity Cost